Exemption on Turnover of Rs.10.00 lakhs

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Sunil (Querist)
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10 August 2009 For this notification exempting Services upto Rs.10.00 lakhs in value, does the word person include only individuals or also sole proprietors, firms, companies, coop societies etc.? It is written that the exemption is not available to services under brand names. Is there any exampleor definition of brand names for this notification?

Guest

Guest (Expert)

10 August 2009 Exemption is based on PAN. A person can provide taxable services for a cumulative value of Rs 10 Lakhs without payment of service tax. Ceiling of Rs 10 Lakhs is for all categories of taxable services and not individual services.

Where service tax is payable by the recepient/importer of taxable service, above exemption is not applicable.

Sunil

Sunil (Querist)
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10 August 2009 Ok. The only question remaining is whether person in this notification includes all types of assessees (proprietorship, partnertship, pvt. ltd. etc.). The problem with this Act is definitions of some words are not consistent in various sections / clauses. What would amount to a branded service. It is possible to imagine branded goods as they are things. But a service is too generic to be branded. Does Service Tax have a definition for branded services?

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Sunil

Sunil (Querist)
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12 August 2009 Thanks. After reading the definitions of the taxable service as
" to a client, by any person in relation to business auxiliary service"
I hope I am correct in assuming that the definition of person is same as in Income Tax (includes all business entities / artificial judicial persons) for purpose of exemption. Now I will only need to ascertain what branding of services is as I can imagine that goods can be branded but how does one brand a service of commission agent. The biggest problem is not only the inambiguity of law but also the inconcistency of interpretation between one assessing officer and the other. Although a service is generic and therefore unbranded, some assessing officer may cook up hundreds of reasons to assume it as branded in a bid to harass the assessee. The only branded service I can think of is telephones and insurance where the particular services may be branded by the service provider eg. Dataone Broadband of BSNL or Life Maker of Max New York Life where these companies register a brand name.